Talos Energy (NYSE:TALO – Get Free Report) and SFL (NYSE:SFL – Get Free Report) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
89.3% of Talos Energy shares are owned by institutional investors. Comparatively, 28.6% of SFL shares are owned by institutional investors. 0.5% of Talos Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Talos Energy and SFL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talos Energy | -18.36% | 4.42% | 1.61% |
| SFL | 12.30% | 6.10% | 1.74% |
Valuation and Earnings
This table compares Talos Energy and SFL”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talos Energy | $2.13 billion | 1.27 | -$494.29 million | ($2.32) | -7.02 |
| SFL | $733.04 million | 2.21 | -$26.43 million | $0.67 | 16.73 |
SFL has lower revenue, but higher earnings than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than SFL, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Talos Energy and SFL, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talos Energy | 1 | 4 | 5 | 0 | 2.40 |
| SFL | 0 | 1 | 2 | 0 | 2.67 |
Talos Energy presently has a consensus target price of $19.71, suggesting a potential upside of 21.13%. SFL has a consensus target price of $14.00, suggesting a potential upside of 24.90%. Given SFL’s stronger consensus rating and higher possible upside, analysts clearly believe SFL is more favorable than Talos Energy.
Risk and Volatility
Talos Energy has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, SFL has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.
Summary
SFL beats Talos Energy on 10 of the 14 factors compared between the two stocks.
About Talos Energy
Talos Energy is an independent energy company focused on the exploration, development and production of oil and natural gas from offshore properties. Its operations have centered on the U.S. Gulf of Mexico and offshore Mexico. Founded in 2012, Talos became a publicly traded company through its 2018 merger with Stone Energy. The company has expanded its offshore portfolio through acquisitions, including its 2023 acquisition of EnVen Energy. Talos is headquartered in Houston, Texas. Timothy S. Duncan, one of the company’s founders, serves as its president and chief executive officer.
About SFL
SFL Corporation Ltd. is an international ship-owning and maritime transportation company that acquires and charters vessels and offshore assets. Its fleet has included crude oil and product tankers, dry bulk carriers, container ships, car carriers and drilling units. The company earns revenue primarily by chartering its assets to shipping and energy customers, often under long-term agreements. Its vessels serve global trade routes, transporting commodities, cargo and vehicles between markets around the world.
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